Business-crippling Bill Defeated by Resounding Bi-Partisan House Vote

(Austin, TX) – The Texas House of Representatives on Thursday night, May 9, overwhelmingly defeated HB2101, which would have created a new class of contractors within the roofing industry and impacted anyone in the “reroofing” business, the majority of which (between 90 and 95 percent) are Hispanic-owned/operated.

The bill was sponsored by Representatives Giovanni Capriglione, R–Keller and Charles “Doc” Anderson, R–Waco, who claimed that this was an effort to better protect consumers against possible roofing fraud, particularly in light of some situations in which homeowners were taken advantage of when in need of fast roofing repairs due to storm damage. In actuality, the bill would have impacted thousands of hard-working, honest Hispanic Independent Contractors rather than a few “bad actors” who are not even legitimate businesses.

Representative Richard Peña Raymond, D-Laredo, worked tirelessly behind the scenes to help ensure defeat of the bill, identifying colleagues from both parties to speak in opposition as well as lining up votes on the House floor. Then, during almost 40 minutes of discussion Thursday, Democrats Ramon Romero, Jr., D-Fort Worth, and Abel Herrero, D-Corpus Christi, were joined by Republican Representatives Sam Harless, R-Houston, Mayes Middleton, R-Wallisville, Steve Toth, R-The Woodlands and Matt Schaefer, R-Tyler, in citing a number of concerns about HB2101 including: A desire not to overregulate small businesses; adding unnecessary licensing requirements to the industry; the creation of a new “class” of roofers; and the potential to ultimately raise the cost of reroofing homes as well as the cost of homeowners’ insurance. Additionally, at least two members contended that the bill would do nothing to protect consumers as its sponsors purported it would do.

Representatives with the U.S. Hispanic Contractors Association of Austin, Texas Association of Mexican American Chambers of Commerce (TAMACC), the Texas Independent Roofing Contractors Association, Austin Roofing Contractors Association, Associated Builders and Contractors, Inc. of Texas, Republican National Hispanic Assembly of Texas, NFIB (an organization that advocates for small and independent business owners) and the League of United Latin American Citizens strongly opposed the bill.

HB2101 specifically related “to the regulation of reroofing contractors; providing administrative and civil penalties; authorizing fees; [and] requiring an occupational registration.” Currently, differentiation of a “roofing” versus “reroofing” business does not exist. Included in the bill’s proposed language: anyone in the “reroofing” business would have had to officially register their company with the Texas Commission for Licensing and Regulation – with a fee attached – and be subject to fines for failing to do so. Those fines would have been set up to $5,000 per day in administrative penalties and up to $500 per violation in civil penalties. Further, the registration was not a permanent one but one that would require reapplication every two years.